UTi Worldwide Achieves 48% Net Income Growth For Fiscal 2004 Second Quarter


RANCHO DOMINGUEZ, Calif., Sept. 10, 2003 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported continued gains in gross and net revenues, operating income and net income for the three- and six-month periods ended July 31, 2003.

For the fiscal 2004 second quarter, gross revenues increased 32 percent to $362.0 million from $274.8 million in the corresponding period a year ago. Net revenues rose 65 percent to $144.9 million from $87.5 million in the second fiscal quarter last year. Standard Corporation, which was acquired effective October 1, 2002, contributed $40.1 million to both gross and net revenues during the current second quarter.

"We are very pleased to have achieved quarter-over-quarter gross and net revenue gains across all service categories in the second fiscal quarter of 2004," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "Although the global economic environment remained sluggish, UTi's airfreight forwarding operations posted a 26 percent increase in second quarter net revenues from the prior year. Despite greater volume in Asia Pacific where our airfreight forwarding yields are lower than the company's average, and reduced airfreight volume in Europe, UTi's team improved its airfreight yields to 29 percent during the current quarter from 25 percent a year ago.

"Ocean freight net revenues advanced 14 percent over last year's second quarter principally due to stronger volumes and the net effect of price increases on Trans-Pacific trade lanes. Net revenues for customs brokerage grew 11 percent compared with a year ago driven by record numbers of both air and ocean shipments. The acquisition of Standard in October 2002 continues to benefit our contract logistics service, which grew to $47.1 million from $8.9 million a year ago and contributed 33 percent of consolidated net revenues," MacFarlane said.

UTi's global network again achieved gross and net revenue gains in all geographic regions over the prior-year period. The Americas, benefiting from the Standard acquisition, recorded a 176 percent increase in net revenues from a year ago. Asia Pacific net revenues rose 22 percent. Europe and Africa posted second quarter net revenue increases of 26 percent and 25 percent, respectively, helped by the weaker U.S. dollar as compared to last year's second quarter.

Operating income grew 31 percent to $15.0 million in the fiscal 2004 second quarter from $11.4 million a year earlier. Operating margin, which is operating income as a percentage of net revenues, equaled 10.4 percent in the current second quarter, compared with 13.1 percent in the second quarter of fiscal 2003. Operating margin in the current second quarter was reduced by the inclusion of Standard Corporation, which traditionally operates at a lower operating margin when compared to other UTi operations. Excluding the operating income of Standard, the company's operating profit ratio, equaled 13.3 percent in the fiscal 2004 second quarter, compared with 13.1 percent in the corresponding prior-year period. Management believes this metric is a key operating indicator to allow a better comparison of the company's current performance against its historical performance, and the attached schedule shows a reconciliation of this measure to UTi's operating income as presented in U.S. GAAP.

Net income for the fiscal 2004 second quarter rose 48 percent to $11.4 million, or $0.36 per diluted share, based on 31.4 million weighted average shares outstanding, compared with prior-year second quarter net income of $7.7 million, or $0.30 per diluted share, based on 25.9 million weighted average shares outstanding. UTi's follow-on offering of 4.6 million ordinary shares in December 2002 resulted in a higher weighted average number of shares outstanding for the current second quarter compared with the corresponding prior-year period.

"As we look forward to the balance of the year, we must keep in mind that last year's third and fourth quarters benefited from extraordinary airfreight volumes in response to the West Coast port lockout in the U.S. To meet our customers' needs at the time, we expanded our air charter program in Hong Kong and China and handled volume that was converted from ocean to air, which positively affected our results. We do not expect a repeat of these unusual circumstances this year, nor its consequential impact on our growth rate," MacFarlane said.

For the six-month period ended July 31, 2003, gross revenues rose 35 percent to $688.8 million from $510.5 million for the same period a year ago. Net revenues totaled $276.3 million, a 68 percent increase over $164.5 million in the comparable prior-year period. Standard Corporation contributed $75.2 million to both gross and net revenues during the six-month period ended July 31, 2003. Operating income for the first half of fiscal 2004 advanced 35 percent to $26.1 million from $19.4 million in the corresponding period a year earlier. Operating margin (operating income as a percentage of net revenues) equaled 9.5 percent in the current six-month period, compared with 11.8 percent a year ago, again reflecting the impact of Standard Corporation. Net income for the fiscal 2004 first half increased 55 percent to $19.4 million, or $0.62 per diluted share, based on 31.3 million weighted average shares outstanding. This compares with net income in the corresponding period a year ago of $12.5 million, or $0.48 per diluted share, based on 25.8 million weighted average shares outstanding.

As of July 31, 2003, the company reported total cash and cash equivalents, net of outstanding bank lines of credit and short-term bank borrowings, of $115 million, compared with $126 million at January 31, 2003. This decrease is due to in part to the increase in working capital as a result of higher volumes, capital expenditures and spending on acquisitions and contingent earn-out payments.

"Solid execution of six quarters of UTi's five-year NextLeap strategy has resulted in improved revenues, operating income and net income for shareholders," MacFarlane said. "Even as global trade volumes remain softer than expected, we continue to partner with our customers to deliver quantified value from UTi's customized supply chain solutions. Our confidence in UTi's market position is demonstrated by our ongoing investment in the skills and talent of our global sales and customer management organization."

About UTi Worldwide

UTi Worldwide Inc. is an international, non-asset based supply chain management company providing air and ocean freight forwarding, contract logistics, customs brokerage and other logistics-related services. The company serves a large and diverse base of global and local companies, including customers operating in industries with unique supply chain requirements such as the pharmaceutical, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to optimize the operation of its customers' global supply chains.

Investor Conference Call

UTi management will host an investor conference call today, Wednesday, September 10, 2003, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the second quarter ended July 31, 2003. The call will be open to all interested investors through a live, listen-only audio Web broadcast via the Internet at www.go2uti.com and www.companyboardroom.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback of the conference call also will be available from 10:00 a.m. PDT, Wednesday, September 10, through 5:00 p.m. PDT, Friday, September 12, by calling 800-633-8284 (domestic) or 402-977-9140 (international) and using Reservation No. 21159077.

Safe Harbor Statement

Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's discussion of its growth strategy and integration of acquisitions. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including increased competition; integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and Europe; risks of international operations; the success and effects of new strategies; disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


 UTi Worldwide Inc. 
 Condensed Consolidated Income Statements 
 (in thousands, except share and per share amounts) 

                         Three Months Ended       Six Months Ended
                              July 31,                 July 31, 
                          2003        2002        2003        2002 
                       ----------  ----------  ----------  ----------
                             (Unaudited)            (Unaudited)
 Gross revenues: 
  Airfreight
   forwarding          $  167,971  $  152,053  $  327,052  $  283,110
  Ocean freight
   forwarding              88,589      70,375     162,911     133,323
  Customs brokerage        17,207      15,501      32,241      29,498
  Contract logistics       56,601      14,057     107,908      25,471
  Other                    31,657      22,833      58,701      39,075
                       ----------  ----------  ----------  ----------
  Total gross revenues $  362,025  $  274,819  $  688,813  $  510,477
                       ==========  ==========  ==========  ==========

 Net revenues:
  Airfreight
   forwarding          $   48,216  $   38,331  $   93,146  $   72,612
  Ocean freight
   forwarding              18,931      16,608      34,989      31,436
  Customs brokerage        16,183      14,531      30,448      27,947
  Contract logistics       47,139       8,880      90,517      15,538
  Other                    14,390       9,183      27,178      16,929
                       ----------  ----------  ----------  ----------
  Total net revenues      144,859      87,533     276,278     164,462
                       ----------  ----------  ----------  ----------

 Staff costs               80,134      43,988     150,554      83,608
 Depreciation and
  amortization              3,751       2,490       7,219       4,827
 Amortization of
  intangible assets           158          --         306          --
 Other operating
  expenses                 45,778      29,609      92,068      56,669
                       ----------  ----------  ----------  ----------

 Operating income          15,038      11,446      26,131      19,358
 Interest income/
  (expense), net              373         (10)        509        (380)
 Gains/(losses) on
  foreign exchange            453          56         324        (315)
                       ----------  ----------  ----------  ----------

 Pretax income             15,864      11,492      26,964      18,663
 Income tax expense        (4,070)     (3,216)     (6,754)     (5,294)
                       ----------  ----------  ----------  ----------

 Income before
  minority interests       11,794       8,276      20,210      13,369
 Minority interests          (378)       (537)       (820)       (873)
                       ----------  ----------  ----------  ----------

 Net income            $   11,416  $    7,739  $   19,390  $   12,496
                       ==========  ==========  ==========  ==========

 Basic earnings per
  ordinary share       $     0.38  $     0.31  $     0.64  $     0.49
 Diluted earnings per
  ordinary share       $     0.36  $     0.30  $     0.62  $     0.48

 Number of weighted-
  average shares
  outstanding used for
  per share calculations
      Basic            30,232,198  25,274,891  30,194,917  25,267,661
      Diluted          31,432,216  25,877,748  31,306,056  25,823,315



 UTi Worldwide Inc. 
 Condensed Consolidated Balance Sheets
 (in thousands)

                                                July 31,   January 31,
                                                  2003         2003
                                               ---------    ---------
                                              (Unaudited)
 ASSETS

 Cash and cash equivalents (including
   restricted cash of $4,000)                  $ 149,574    $ 168,125
 Trade receivables, net                          275,091      247,893
 Deferred income tax assets                        4,089        1,592
 Other current assets                             34,620       30,492
                                               ---------    ---------
          Total current assets                   463,374      448,102

 Property, plant and equipment, net               49,880       44,566
 Goodwill and other intangible assets, net       131,302      125,641
 Investments                                         822          847
 Deferred income tax assets                        2,228        1,227
 Other non-current assets                          9,004        6,692
                                               ---------    ---------
          Total assets                         $ 656,610    $ 627,075
                                               =========    =========

 LIABILITIES & SHAREHOLDERS' EQUITY

 Bank lines of credit                          $  31,804    $  33,458
 Short-term borrowings                             2,772        9,121
 Current portion of capital lease obligations      2,320        2,539
 Trade payables and other accrued liabilities    248,409      236,548
 Income taxes payable                             10,024        8,083
 Deferred income tax liabilities                     995          489
                                               ---------    ---------
      Total current liabilities                  296,324      290,238

 Long-term bank borrowings                           102          199
 Capital lease obligations                         7,324        7,111
 Deferred income tax liabilities                   1,957        1,643
 Retirement fund obligations                       1,111        1,016

 Minority interests                                3,404        2,699

 Commitments and contingencies

 Shareholders' equity:
      Common stock                               312,815      311,161
      Retained earnings                           80,473       63,973
      Accumulated other comprehensive loss       (46,900)     (50,965)
                                               ---------    ---------
         Total shareholders' equity              346,388      324,169
                                               ---------    ---------

         Total liabilities and
           shareholders' equity                $ 656,610    $ 627,075
                                               =========    =========



 UTi Worldwide Inc.
 Condensed Consolidated Statements of Cash Flows
  (in thousands)

                                                  Six Months Ended
                                                      July 31, 
                                                  2003        2002
                                               ---------    ---------
                                               (Unaudited)
 OPERATING ACTIVITIES: 

 Net income                                    $  19,390    $  12,496
 Adjustments to reconcile net income to net cash
  provided by operating activities:
   Stock compensation costs                           87           91
   Depreciation and amortization                   7,219        4,827
   Amortization of intangible assets                 306           --
   Deferred income taxes                           1,490           49
   (Gain)/loss on disposal of property,
     plant and equipment                             (47)         121
   Other                                             820          873
   Changes in operating assets and liabilities:
       Increase in trade receivables and other
         current assets                          (20,776)     (21,817)
       Increase in trade payables and other
         accrued liabilities                       5,341       18,600
                                               ---------    ---------
   Net cash provided by operating activities      13,830       15,240
                                               ---------    ---------

 INVESTING ACTIVITIES:

 Purchases of property, plant and equipment       (9,018)      (4,542)
 Proceeds from disposal of property,
   plant and equipment                               312          307
 Increase in other non-current assets             (1,077)         (25)
 Acquisition of subsidiaries and
   contingent earn-out payments                   (8,044)      (6,606)
 Purchases of other investments                     (170)          --
                                               ---------    ---------
   Net cash used in investing activities         (17,997)     (10,866)
                                               ---------    ---------

 FINANCING ACTIVITIES:

 Decrease in bank lines of credit                 (1,653)      (7,259)
 Decrease in short-term borrowings                (6,346)         (57)
 Long-term bank borrowings - repaid                 (116)        (968)
 Capital lease obligations - repaid               (1,739)      (2,263)
 Decrease in minority interests                     (327)        (170)
 Proceeds from issuance of ordinary shares         1,567          426
 Dividends paid                                   (2,890)      (1,929)
                                               ---------    ---------
      Net cash used in financing activities      (11,504)     (12,220)
                                               ---------    ---------

 Net decrease in cash and cash equivalents       (15,671)      (7,846)
 Cash and cash equivalents at
   beginning of period                           168,125       87,594
 Effect of foreign exchange rate changes          (2,880)        (483)
                                               ---------    ---------
 Cash and cash equivalents at end of period    $ 149,574    $  79,265
                                               =========    =========


 UTi Worldwide Inc.
 Segment Reporting
 (in thousands) 

                           Three Months Ended July 31, 2003
                                     (Unaudited)

                                     Asia
                 Europe  Americas  Pacific  Africa  Corporate  Total  
                 -------  -------  -------  -------  -------  -------
 Gross revenue
  from external
  customers     $104,435 $114,281  $96,169  $47,140  $    -- $362,025
                 =======  =======  =======  =======  =======  =======

 Net revenue     $31,513  $65,147  $21,147  $27,052  $    -- $144,859
 Staff costs      18,132   38,518    8,897   13,198    1,389   80,134
 Depreciation and
  amortization     1,074    1,022      550      742      363    3,751
 Amortization of
  intangible
  assets              --      149       --        9       --      158
 Other operating
  expenses         9,174   21,432    5,412    8,357    1,403   45,778
                 -------  -------  -------  -------  -------  -------
 Operating
  income/(loss)  $ 3,133  $ 4,026  $ 6,288  $ 4,746  $(3,155)  15,038
                 =======  =======  =======  =======  =======
 Interest
  income, net                                                     373
 Gain on foreign
  exchange                                                        453
                                                              -------
 Pretax income                                                 15,864
 Income tax expense                                            (4,070)
                                                              -------
 Income before
  minority interests                                         $ 11,794
                                                              =======

                           Three Months Ended July 31, 2002
                                      (Unaudited)

                                    Asia
                 Europe  Americas  Pacific  Africa  Corporate  Total
                 -------  -------  -------  -------  -------  -------
 Gross revenues
  from external
  customers      $93,229  $68,561  $79,375  $33,654  $    -- $274,819
                 =======  =======  =======  =======  =======  =======

 Net revenues    $24,927  $23,634  $17,340  $21,632  $    --  $87,533
 Staff costs      13,341   13,771    7,175    8,585    1,116   43,988
 Depreciation and
  amortization       844      503      487      462      194    2,490
 Other operating
  expenses         7,050    7,406    4,912    9,264      977   29,609
                 -------  -------  -------  -------  -------  -------
 Operating
  income/(loss)  $ 3,692  $ 1,954  $ 4,766  $ 3,321  $(2,287)  11,446
                 =======  =======  =======  =======  =======
 Interest
  expense, net                                                    (10)
 Gains on foreign
  exchange                                                         56
                                                              -------
 Pretax income                                                 11,492
 Income tax expense                                            (3,216)
                                                              -------
 Income before
  minority interests                                          $ 8,276
                                                              =======


 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)
                            Six Months Ended July 31, 2003
                                      (Unaudited)

                                    Asia
                 Europe  Americas  Pacific  Africa  Corporate  Total
                 -------  -------  -------  -------  -------  -------
 Gross revenue
  from external
  customers     $203,368 $217,395 $180,002  $88,048  $    -- $688,813
                 =======  =======  =======  =======  =======  =======
 Net revenue     $58,997 $122,446  $40,258  $54,577  $    -- $276,278
 Staff costs      34,383   71,688   17,060   24,788    2,635  150,554
 Depreciation and
  amortization     2,115    2,002    1,062    1,404      636    7,219
 Amortization of
  intangible
  assets             --       297       --        9       --      306
 Other operating
  expenses        17,691   41,026   10,319   20,561    2,471   92,068
                 -------  -------  -------  -------  -------  -------
 Operating
  income/(loss)  $ 4,808  $ 7,433  $11,817  $ 7,815  $(5,742)  26,131
                 =======  =======  =======  =======  =======
 Interest
  income, net                                                     509
 Gain on foreign
  exchange                                                        324
                                                              -------
 Pretax income                                                 26,964
 Income tax expense                                            (6,754)
                                                              -------
 Income before
  minority interests                                         $ 20,210
                                                              =======

                            Six Months Ended July 31, 2002
                                     (Unaudited)

                                    Asia
                 Europe  Americas  Pacific  Africa  Corporate  Total
                 -------  -------  -------  -------  -------  -------
 Gross revenues
  from external
  customers     $172,467 $130,103 $144,529  $63,378  $    -- $510,477
                 =======  =======  =======  =======  =======  =======
 Net revenues    $46,729  $45,342  $32,181  $40,210  $   --  $164,462
 Staff costs      24,727   27,020   13,812   15,974   2,075    83,608
 Depreciation and
  amortization     1,603    1,141      946      872      265    4,827
 Other operating
  expenses        13,378   14,349    9,450   17,023    2,469   56,669
                 -------  -------  -------  -------  -------  -------
 Operating
  income/(loss)  $ 7,021  $ 2,832  $ 7,973  $ 6,341  $(4,809)  19,358
                 =======  =======  =======  =======  =======
 Interest
  expense, net                                                   (380)
 Losses on
  foreign exchange                                               (315)
                                                              -------
 Pretax income                                                 18,663
 Income tax expense                                            (5,294)
                                                              -------
 Income before
  minority interests                                          $13,369
                                                              =======



 UTi Worldwide Inc.
 Reconciliation of Non-U.S. GAAP Measure to U.S. GAAP Measure
 (in thousands)

                             Three Months Ended     Six Months Ended
                                  July 31,              July 31,
                              2003       2002       2003       2002
                            --------   --------   --------   --------
                                (Unaudited)           (Unaudited)
 OPERATING PROFIT RATIO

 Operating income,
  per U.S. GAAP             $ 15,038   $ 11,446   $ 26,131   $ 19,358
 Less: Operating income for
  Standard Corporation,
  per U.S. GAAP                1,154         --      3,044         --
                            --------   --------   --------   --------

  Adjusted operating income $ 13,884   $ 11,446   $ 23,087   $ 19,358
                            ========   ========   ========   ========

 Divided by:
  Net revenue,
   per U.S. GAAP            $144,859   $ 87,533   $276,278   $164,462
  Less: Net revenue for
   Standard Corporation,
   per U.S. GAAP              40,145         --     75,201         --
                            --------   --------   --------   --------

  Adjusted net revenue      $104,714   $ 87,533   $201,077   $164,462
                            ========   ========   ========   ========

 Operating Profit Ratio,
  a non-U.S. GAAP measure       13.3%      13.1%      11.5%      11.8%
                            ========   ========   ========   ========


            

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